SEC Probes Fund's Allegedly Bogus Pre-IPO Facebook Claims

Law360, New York (September 19, 2012, 3:08 PM EDT) -- The U.S. Securities and Exchange Commission is investigating whether a California venture capital fund raised $3 million by lying to investors about its stake in Facebook Inc. ahead of the company's initial public offering, according to recent court filings.

In June, SEC investigators subpoenaed financial records of Paul Tabet, a manager at Ventures Trust II LLC, and his wife. The agency alleges Tabet and his partners misled investors and may have stolen some of the money they raised.

Tabet and business partner Craig L. Berkman —...
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